1. Presented by BlumShapiro
Tax Reform
February 21st Webinar
Presented by BlumShapiro
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This webinar is being recorded, and we will distribute the recording after the webinar.
Marta Hodgkins-Sumner
Director of Membership and Programs

2. Tax Reform Agenda Tax reform affecting tax-exempts
Tax provisions that didn’t pass
New tax provisions for tax-exempts
Charitable contribution provisions for donors

3. Tax Provisions That Did Not Pass
UBIT on royalty from use of name and logo
Exception related to political campaigns
Research income rules
Repeal of educational assistance benefits

4. Tax Provisions That Did Not Pass
Limitation on tax-free on-campus housing
Increased charitable mileage rate 
Modifications to intermediate sanctions rules
Tax exemption for professional sports leagues

5. Tax Provisions That Did Not Pass
Repeal of tax-free dependent care assistance
Removal of adoption assistance benefits
Private foundation investment excise tax
Additional reporting for donor advised funds

6. New Tax Provisions for Tax-exempts
1. Higher education investment excise tax
1.4% excise tax on net investment income
Private colleges and universities
Institutions with 500+ tuition-paying students
$500k per full-time student
Effective tax years beginning after 2017

7. New Tax Provisions for Tax-exempts
2. Excise tax on executive compensation
21% excise tax on sum of:
Compensation (other than excess parachute payment) in excess of $1 million paid to a covered employee, plus
Any excess parachute payment paid to a covered employee
Employer is liable for excise tax
Effective for amounts paid after 2017

8. New Tax Provisions for Tax-exempts
3. Fringe benefits included in UBTI
Qualified transportation fringe
Qualified parking fringe
Use of on-premises athletic facilities
Effective for amounts paid or incurred after 2017

9. New Tax Provisions for Tax-exempts
Polling question 1 and response choices
Does your organization offer tax-free commuting benefits, such as parking or mass transit fringe benefits to employees?
Yes, parking
Yes, mass transit
Yes, both No

10. New Tax Provisions for Tax-exempts
Other provisions affecting tax-exempts 4. Tax-exempt bonds advance refunding 5. Entertainment expenses 6. Moving expenses

11. New Tax Provisions for Tax-exempts
7. Unrelated business activity silos
Separately calculate UBTI for each business activity
Prohibits use of losses against another activity
Can use excess deductions from one year to offset income from same unrelated business in another year
Applies to tax years beginning after 2017

12. New Tax Provisions for Tax-exempts
Polling question 2 and response choices
Does your organization have one or more unrelated business activity?
Yes, one
Yes, more than one
None
Other/don’t know

13. New Tax Provisions for Tax-exempts
Corporate and trust tax impacts on UBIT 8. Net operating loss deduction 9. Alternative minimum tax 10. Corporate and trust tax rates on UBIT

14. Tax Reform Provisions for Donors
Reduction of top marginal rate
Increase in standard deduction
Charitable deduction limit increase to 60% AGI

15. Tax Reform Provisions for Donors
No Pease limit on itemized deductions
No 80% deduction for payments for right to buy tickets to a college athletic event
Reduction in estate taxes

16. Tax Reform Provisions for Donors
How will tax reform affect charitable giving?
Why do people give?
What are your donor stratums?
How will your fundraising efforts change?
What is the panacea?

17. Tax Reform Provisions for Donors
Polling question 3 and response choices
Has your organization strategized internally (with your development team, management team, board, etc.) on how to increase charitable giving in light of tax reform?
Yes
No or not yet
Other/don’t know

18. Tax Reform Provisions for Donors
Why do people like to give …?
Fun!
Chance to win things
Opportunity to network
Opportunity to socialize
Because someone asked
Want to feel good
Want to be recognized
Want to know what their money does
Want to know they helped someone
Want to belong

19. Tax Reform Provisions for Donors
What are your strategies for different donor stratums?
Wealthy donors
Foundation donors
Corporate donors
IRA charitable rollover
Appreciated stock and other property
Bunching of donations
Donor advised funds
Charitable trusts
Gift tax exclusion
Communication and cultivation

20. “Sweet” 16 Tax Reform Provisions Affecting Nonprofit Organizations
Estate Tax
+ Standard deduction
Estate tax
+ Standard deduction
Individual rate reduction
Char limit increase
Estate tax
+ Standard
deduction
Moving expenses
Executive compensation
Entertainment expenses
Estate tax
Executive compensation
No Pease limit
Entertainment expenses
Estate tax
Higher Ed investment tax
Fringe benefit UBI
Higher Ed investment tax
UBI silos
+ Standard deduction
College Athletic Seating
UBI silos
UBI silos
Higher Ed investment tax
NOL limits
Corporate tax rate
NOL limits
Corporate tax rate
AMT
Bonds advance refunding

21. Thank you for participating today!
Laura J. Kenney, CPA, MST
Principal
Non-Profit Tax Services